S.Amdt. 6683

SA 6683, submitted by Mr. Cotton, aims to add a new section to bill S. 4784 called the Chip Security Act.

The purpose of this amendment is to protect advanced integrated circuits and computing hardware exported from the United States from being stolen, diverted, or used without authorization. It specifically highlights the risk of illegal diversion to the Russian Federation and the People's Republic of China, which threatens national security.

To achieve this, the amendment adds the following to the bill:

• Chip Security Mechanisms: It requires the Under Secretary of Commerce for Industry and Security to establish security mechanisms (which could be software, firmware, hardware, or physical audits) to verify that covered products are not illegally sent to destinations of concern.

• Scope of Application: These requirements apply to integrated circuits, computers, or components designed or marketed for datacenter use. It explicitly excludes products not meant for datacenters, standard central processing units, and network switch integrated circuits used for routing traffic.

• Implementation Process: The Under Secretary must conduct an initial assessment, engage with stakeholders, and report to Congress before creating rules to require these security mechanisms for exports, re-exports, or in-country transfers.

• Enforcement and Monitoring: The act allows the government to maintain records of these products, verify their location and ownership, and treat any violations as violations of the Export Control Reform Act of 2018.

• Protections and Waivers: The amendment prohibits mechanisms that would hinder the product's functionality (like kill switches) or undermine cybersecurity. It also allows the Under Secretary to waive requirements if they create an undue burden on United States competitiveness.